Payden Corporate Bond Fund (PYACX)
$9.60
NAV ($)
$-0.07
NAV change ($) as of 3/27/2023
- Overview
- Portfolio Statistics
- Performance & Expenses
- Fund Commentary
Investment Strategy
The Payden Corporate Bond Fund’s strategy is to purchase investment-grade corporate bonds of companies that have leading market positions, strong cash flow generation, stable management teams and predictable earnings. The strategy’s focus is on bottom-up credit selection with an emphasis placed on adding issues with a near-term catalyst to outperform. Our credit research process looks to capitalize on opportunities in the corporate bond market across sectors and maturities; including the early identification of potential rising stars - companies that we believe will be upgraded to investment grade in the near term. A forward-looking approach is taken to credit analysis. A priority is placed on assessing a company’s future trajectory and the corresponding risk and opportunities for bondholders under various scenarios. Up to 20% of fund assets may be below investment grade.
Role In Portfolio
Appropriate as a fixed-income holding for investors seeking a dedicated corporate bond strategy.
Fund Highlights
| The fund is a well-diversified portfolio of U.S. dollar investment-grade corporate securities backed by extensive in-house credit research | |
| It invests in credits across the full maturity spectrum and its duration and curve positioning are actively managed | |
| The fund has the flexibility to opportunistically invest in below investment-grade securities and emerging-market debt | |
| No loads or 12b-1 fees (other fees apply) | |
| The value of an investment will generally fall when interest rates rise |
Fund Snapshot - 02/28/2023
| Fund Inception Date | Mar 12, 2009 |
| Share Class Inception Date | Mar 12, 2009 |
| Ticker | PYACX |
| CUSIP | 704329366 |
| Fund Total Net Assets | $355.3 million |
| Benchmark | BLOOMBERG US CORPORATE BOND INDEX |
| Net Expense Ratio | 0.66% |
| Sales Charge | None |
| Investment Minimum | |
| Investor Class - Regular Account | $5,000 |
| Investor Class - IRA Account | $2,000 |
| SI Class | $10,000,000 |
| Additional Investment - All Classes | $250 |
A Low Cost leader
| Payden Corporate Bond Fund (PYACX) | Morningstar average: Corporate Bond |
|
|---|---|---|
| Net Expense Ratio | 0.66% | 0.87% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
Portfolio Characteristics - 02/28/2023
| Fund Inception Date | Mar 12, 2009 |
| Total Net Assets | $355.3 million |
| Average Duration | 7.2 years |
| Average Maturity | 11.2 years |
| 30-Day SEC Yield (03/24/23) | 5.03% |
| 30-Day SEC Yield (unsubsidized) | 5.04% |
Duration Breakdown
| Years | Percent of Portfolio |
|---|---|
| 0-1 | 6% |
| 1-3 | 18% |
| 3-5 | 19% |
| 5-7 | 12% |
| 7-10 | 20% |
| 10+ | 25% |
| Total | 100% |
Credit Breakdown
| Credit Quality | Percent of Portfolio |
|---|---|
| AAA | 3% |
| AA | 11% |
| A | 31% |
| BBB | 43% |
| BB | 9% |
| B | 1% |
| Unrated | 2% |
| Total | 100% |
Sector Breakdown
| Sector | Percent of Portfolio |
|---|---|
| Industrials | 51% |
| Financial Institutions | 37% |
| Utilities | 3% |
| Asset-Backed | 3% |
| Government/Gov't Related | 2% |
| Other | 4% |
| Total | 100% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
| Number of funds | |||
|---|---|---|---|
 |
Overall |  |
192 |
| 3 Year | |
192 | |
| Category: Corporate Bond | 5 Year | |
170 |
| Criterion: Risk-Adjusted Return | 10 Year | |
100 |
Total Returns
| YTD | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| Quarter-end (12/31/2022) | -16.33% | -16.33% | -3.15% | 0.16% | 2.54% | 4.83% |
| Month-end (2/28/2023) | 1.14% | -10.90% | -4.02% | 0.79% | 2.62% | 4.86% |
Yearly Returns
| 2022 | -16.33% |
| 2021 | -0.07% |
| 2020 | 8.64% |
| 2019 | 14.46% |
| 2018 | -3.05% |
| 2017 | 8.53% |
| 2016 | 6.82% |
| 2015 | 1.15% |
| 2014 | 9.14% |
| 2013 | -0.39% |
Expenses
| Total Annual Operating Expense | 0.66% |
| Net or Actual Operating Expense | 0.66% |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.
(A) An overall rating is based on a weighted average of the fund’s ratings for the three-, five- and ten-year periods, if applicable. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars and the next 22.5% receive four stars. Highly rated funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Paydenfunds
Fund Commentary - 02/28/2023
| MARKET | |
| In February, investors seemed to come to terms with the Federal Reserve’s higher rates for longer rhetoric, and resilient economic data as U.S. Treasury rates moved higher across the curve by as much as 0.63%. Similarly, 1- to 30-year corporate yields over similar-maturity U.S. Treasuries sold off by 0.07% to 1.24%. The combined effect resulted in all-in yields on 1- to 30-year investment-grade corporate bonds rising 0.55% to 5.51%, its highest level since November 2022. | |
| February saw its largest supply on record with $151 billion coming to market. Non-financial supply outpaced financials 85% to 15%, respectively, driven by Mergers & Acquisitions funding which made up for three of the five largest deals on the month. U.S. Green, Social, and Sustainability-linked (GSS) issuance continues to see a slowdown with just $2.5 billion on the month, bringing the year-to-date total to $5 billion. | |
| OUTLOOK | |
| During the month, the Fund utilized the heavy new issue calendar adding names across a broad range of sectors including consumers, utilities, and financials. On the other side, the Fund sold out of names within identical sectors to keep exposures in line while continuing to sell some of its more defensive positions that we viewed as having lower performance potential on a go-forward basis. | |
| We believe corporate fundamentals remain solid. While margin pressure is a concern, they are coming off peak levels and most companies have termed out their debt at much cheaper borrowing costs so there is no looming maturity wall. We are also seeing a renewed appetite for corporates at these higher all-in yields, which we believe is likely to keep a lid on any credit sell-off in the near term. | |
Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.
To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.
Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.
The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.